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India has signed an agreement to operate Iran's Chabahar port for 10 years

India has signed an agreement with Iran to operate the Iranian port of Chabahar for 10 years, the government of Indian Prime Minister Narendra Modi said, Reuters reports.

India was developing the Chabahar port on Iran's southeastern coast as a transit route to Iran, Afghanistan and Central Asian countries, bypassing the ports of Karachi and Gwadar in Pakistan.

However, according to the publication, Washington's sanctions against Tehran have slowed down the development of the port.

The signing of the contract took place in Tehran, where Indian Shipping Minister Sarbananda Sonowal arrived.

The long-term contract was signed between Indian Ports Global Limited (IPGL) and Port & Maritime Organization of Iran. Iran's Minister of Roads and Urban Development, Mehrdad Bazrpash, said that IPGL will invest about $120 million, and there will be additional funding of $250 million, bringing the value of the contract to $370 million.

Chabahar is the only Iranian port that has direct access to the Indian Ocean. India is also seeking to transform Iran's Chabahar port into a transit hub for accessing the CIS market within the framework of the North-South International Transport Corridor.

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